Bill Text: PA SB973 | 2009-2010 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Providing for the definition of "home improvement retailer"; and further providing for procedures for registration as a contractor and for prohibited acts.

Spectrum: Bipartisan Bill

Status: (Engrossed - Dead) 2010-03-17 - Laid on the table [SB973 Detail]

Download: Pennsylvania-2009-SB973-Introduced.html

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PRINTER'S NO. 1188
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 973 Session of2009
INTRODUCED BY TOMLINSON AND BOSCOLA, JUNE 18, 2009
REFERRED TO CONSUMER PROTECTION AND PROFESSIONAL LICENSURE, JUNE 18, 2009
AN ACT
Amending the act of October 17, 2008 (P.L.1645, No.132),
entitled "An act providing for the regulation of home
improvement contracts and for the registration of certain
contractors; prohibiting certain acts; and providing for
penalties," providing for the definition of "home improvement
retailer"; and further providing for procedures for
registration as a contractor and for prohibited acts.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 2 of the act of October 17, 2008
(P.L.1645, No.132), known as the Home Improvement Consumer
Protection Act, is amended by adding a definition to read:
Section 2. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
* * *
"Home improvement retailer." A person, whether or not the
person is registered under this act, who sells materials for use
in home improvement contracts.
* * *
Section 2. Sections 4(a)(1)(i) and (ix), 5 and 9(10) of the
act are amended to read:
Section 4. Procedures for registration as a contractor.
(a) Application.--
(1) A person shall apply to the bureau in writing or
electronically via a secure Internet connection, if permitted
by the bureau, on a form provided by the bureau. The
application shall include the following information:
(i) For an individual applicant, all of the
following:
(A) Name.
(B) Date of birth.
(C) Home address and home telephone number.
(D) Driver's license number [or], a copy of an
identification card issued by the state in which the
individual resides or other form of identification as
permitted by the bureau.
(E) Business name, address and telephone number.
(F) Federal employer identification number, if
applicable.
(G) Social Security number.
(H) All prior business names and addresses of
home improvement businesses operated by the
individual.
* * *
(ix) Proof of liability insurance covering personal
injury in an amount not less than $50,000 and insurance
covering property damage caused by the work of a home
improvement contractor in an amount not less than
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$50,000. For the purpose of this subparagraph, proof of
insurance may include information indicating that the
applicant is self-insured and the bureau may determine
the sufficiency of the self-insurance and the manner in
which it is maintained in compliance with this act.
* * *
Section 5. Application fees.
(a) Amount.--Each application for a certificate for a home
improvement contractor or renewal of that certificate shall be
accompanied by a fee of $50. After completion of the application
and payment of the fee, the bureau shall issue the home
improvement contractor a registration certificate identifying
the name of the individual contractor, name and address of the
business and a registration number. Renewals shall be on a
biennial basis.
(b) Home Improvement Account.--A restricted revenue account
known as the Home Improvement Account is established in the
State Treasury. All fees and penalties collected under this act
prior to the effective date of this subsection shall be
transferred into the Home Improvement Account. All fees and
penalties collected under this act after the effective date of
this subsection shall be deposited into the Home Improvement
Account. The funds in the Home Improvement Account and any
interest earned shall be dedicated to the Attorney General for
administering and enforcing the provisions of this act and to
protect consumers with respect to home improvements through
consumer education and other means.
Section 9. Prohibited acts.
No person shall:
* * *
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(10) [For] (i) Except as provided under subparagraph
(ii), for a home improvement contract in which the total
price is more than [$1,000] $5,000, receive a deposit in
excess of:
[(i)] (A) one-third of the home improvement
contract price; or
[(ii)] (B) one-third of the home improvement
contract price plus the cost of special order
materials that [have been ordered] will be ordered,
as designated in the written contract.
(ii) The provisions of subparagraph (i) shall not
apply to a home improvement retailer, regardless of net
worth, who does all of the following:
(A) Posts an irrevocable letter of credit,
payable to the bureau for the use and benefit of
every person protected by the provisions of this
subparagraph in a form approved by the bureau, in the
amount of $100,000 per store location but not to
exceed $1,000,000 for a home improvement retailer
that has multiple stores.
(B) Ensures that its contractors are registered
under this act and have proof of liability insurance
as defined in Section 4(a)(1)(ix).
(iii) In the event of a dispute with a home
improvement retailer or a contractor authorized to do
work on behalf of the home improvement retailer, an owner
may file with the bureau a complaint against the home
improvement retailer and request a draw upon the home
improvement retailer's letter of credit. The following
shall apply:
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(A) Upon receipt of a complaint, the bureau
shall notify the home improvement retailer and
investigate the complaint.
(B) Upon a determination by the bureau that the
home improvement retailer is in default of the
contract, the bureau may, after providing notice to
the home improvement retailer, draw upon the
irrevocable letter of credit.
(C) A home improvement retailer with two draws
on an irrevocable letter of credit issued for the
purposes of this subparagraph shall be prohibited
from posting an irrevocable letter of credit for
purposes of this subparagraph for a period of five
years beginning from the date of the second draw and
shall be required to comply with subparagraph (i).
* * *
Section 3. This act shall take effect immediately.
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